Quick answer: In Canada, the minimum down payment is:
- 5% on the first $500,000
- 10% on the portion from $500,000 to $1.5 million
- 20% on homes of $1.5 million or more
That works out to $55,000 on an $800,000 home and $75,000 on a $1 million home. With less than 20% down, you'll pay mortgage default insurance. First-time buyers can draw on their FHSA (up to $40,000), the RRSP Home Buyers' Plan (up to $60,000) and gifts from family.
Part of our First-Time Buyer's Guide to Buying a Resale Home in Ontario.
What is the minimum down payment in Canada?
| Purchase price | Minimum down payment | Example |
|---|---|---|
| Up to $500,000 | 5% | $450,000 → $22,500 |
| $500,000 – $1,499,999 | 5% of the first $500,000 + 10% of the rest | $800,000 → $55,000 |
| $1,500,000 or more | 20% | $1,600,000 → $320,000 |
Since December 15, 2024, insured mortgages are available on homes up to $1.5 million. Above that, you need 20% down.
Minimum down payment examples
| Home price | Minimum down | Mortgage before insurance |
|---|---|---|
| $600,000 | $35,000 | $565,000 |
| $800,000 | $55,000 | $745,000 |
| $1,000,000 | $75,000 | $925,000 |
| $1,200,000 | $95,000 | $1,105,000 |
What is mortgage default insurance?
If you put less than 20% down, your mortgage must be insured by CMHC, Sagen or Canada Guaranty. The premium is a percentage of your mortgage and is added to the loan:
| Down payment | Premium (as % of mortgage) |
|---|---|
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% or more | Not required |
Choosing a 30-year amortization adds 0.20% to the premium. In Ontario, you also pay 8% PST on the premium, in cash at closing.
Is 20% down worth it?
- Pros of 20%: no insurance premium, smaller mortgage, lower monthly payments.
- Pros of less than 20%: you buy sooner, and insured mortgages often get lower interest rates.
Many first-time buyers put down 5–10% and buy sooner rather than waiting years to save 20%.
Where can my down payment come from?
- Savings and investments: lenders usually want 90 days of account history.
- FHSA (First Home Savings Account): contribute up to $8,000 a year and $40,000 total. Contributions are tax-deductible, and qualifying withdrawals are tax-free.
- RRSP Home Buyers' Plan (HBP): withdraw up to $60,000 tax-free, then repay over 15 years.
- Gifts from family: allowed with a signed gift letter confirming the money doesn't need to be repaid.
- Sale of another property.
Couples can each use their own FHSA and HBP, so two first-time buyers can potentially combine up to $80,000 from FHSAs and $120,000 from HBPs. See our first-time buyer programs guide.
Don't forget closing costs
Your down payment isn't the only cash you need. Lenders want to see about 1.5% of the price set aside for closing costs, which are mostly land transfer tax. See our resale closing costs guide.
Down payment checklist
- ☐ Calculate your minimum down payment for your target price
- ☐ Open an FHSA if you haven't. It only builds room once opened.
- ☐ Check your RRSP balance for the Home Buyers' Plan
- ☐ Keep 90 days of statements for every source
- ☐ Get a signed gift letter for any family gifts
- ☐ Add 1.5% of the price for closing costs
Related reading: Mortgage rates and the stress test · How to buy a resale home, step by step
Frequently asked questions
What is the minimum down payment for a house in Ontario?
5% on the first $500,000 and 10% on the portion up to $1.5 million. Homes of $1.5 million or more need 20% down.
How much do I need for an $800,000 home?
At least $55,000 down, plus about 1.5–3% for closing costs, mostly land transfer tax.
Can I use a gift for my down payment?
Yes. Most lenders accept gifts from immediate family with a signed gift letter and proof the funds are in your account.
Can I use my FHSA and the Home Buyers' Plan together?
Yes. First-time buyers can use both for the same home, if they meet each program's rules.
Can I buy with 5% down on a rental property?
No. Insured mortgages generally require you or a family member to live in the home. Investment properties usually need 20% down.
About the author: Ola Otubu is a REALTOR® with Realty ONE Group Reveal, Real Estate Brokerage, and the founder of Buyprecon.ca. He represents buyers of new construction and resale homes across Ontario.
This article is general information, not financial advice. Program rules and premiums can change. Confirm with your lender and the CRA. Sources: Department of Finance Canada; CMHC; Canada Revenue Agency.
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